PM ‘fund-amentally’ speeds up investment for 2025 economy
Prime Minister Paetongtarn Shinawatra directed government entities to hasten the allocation of the investment budget for fiscal year 2025 to invigorate the nation’s economy. During a meeting with senior officials at the Finance Ministry yesterday, November 4, Paetongtarn highlighted that Thailand is grappling with longstanding issues compounded by new challenges.
The 38 year old prime minister emphasised the necessity for the government to tackle deep-seated structural problems, enhance resilience, and foster economic growth. PM Paetongtarn remarked that public spending remains a vital mechanism for stimulating private expenditure and boosting consumption.
The Thai PM noted that the 900-billion-baht (US$26.7 billion) investment fund constitutes 5% of Thailand’s GDP. The efficient utilisation of this fund is expected to generate economic activity, increase income, and help achieve the desired GDP growth.
According to Finance Permanent Secretary Lavaron Sangsnit, the government is targeting a minimum disbursement of 80% of the investment budget. Lavaron mentioned that accelerating fund release would help meet this target without requiring additional measures.
“The first month of the 2025 fiscal year, October, showed above-average disbursement.”
The 2025 fiscal budget of 3.75 trillion baht (US$111.3 billion) became effective today, with the investment budget of 900 billion baht making up 24.2% of the total expenditure.
Simultaneously, the northern office of the Bank of Thailand reported that economic conditions and consumption are expected to improve in the final quarter of this year, aided by the high tourism season and governmental stimulus measures.
The industrial manufacturing sector is predicted to see a boost due to increased demand from international partners and heightened consumer demand during the festive period. However, farmers’ income is anticipated to decline due to the rising cost of living and severe flooding in the area, potentially curtailing consumer spending.
The tourism sector is showing signs of recovery, yet challenges such as declining consumer spending, swift market changes, and geopolitical issues persist in the region, reported Bangkok Post.
Recent severe flooding has inflicted significant damage in Chiang Mai, Chiang Rai, Phayao, Phrae, Nan, Lampang, and Lamphun. The damage is estimated at a minimum of 14 billion baht (US$415.9 billion), potentially reducing the gross regional product by 0.7%.
